Political economy concentrates on studying the effects of capitalism on labor, productivity, and economic development.
What are the three forms of political economy?
Capitalism, socialism, and communism are the three forms of political economy. In socialism and communism, the government and society own the resources. However for capitalism, private individuals own the resources.
What is the difference between political economy and economics?
Both political economy and economics focus on the study of markets. The political economy take into consideration political and social factors in which economics does not.
The significance of political economy
Political economy is essential in defining the relationship between societies, the government, and citizens. In addition, it determines the effect of public policy on numerous entities.